Javier Milei could bring out the chainsaw to torpedo the sale of Telefónica's subsidiary in Argentina for about 1.190 million euros to Telecom Argentina, controlled by the media group Clarín, as reported by Europa Press. This is the threat made by the Argentine president, citing the defense of free competition.
Immediately after notifying the Spanish and Argentine stock market regulators, the Argentine president's office issued a statement emphasizing that they will defend free competition and user choice.
Specifically, the statement indicates that "based on reports circulating about the potential acquisition of the Telefónica Group by Telecom, part of the Clarín Group, the National Communications Entity (Enacom) and the National Commission for the Defense of Competition (CNCD) will be involved to assess whether this operation does not constitute the formation of a monopoly."
According to the presidency, this acquisition "could leave approximately 70% of the telecommunications services in the hands of a single economic group, which would generate a monopoly formed thanks to decades of state benefits received by said company. If this is the case, the National State will take all necessary measures to prevent it," as reported by the newspaper 'Clarín'.
The statement points out that "the current regulatory framework establishes a control system over transfers, assignments, and acquisitions in the case of information and communications, and as it happens in other Western countries, the national Government is committed to preventing the formation of a new monopoly, which with these characteristics, created in the light of decades of state benefits, would go against free competition and would undermine the deflationary process that Argentina is going through."
It emphasizes that "this Government reduced inflation for the communications segment from 15.6% in December 2023 to 2.3% in January of this year, and is determined to continue that process."
The presidential statement concludes by stating that "the national Government will take all measures to guarantee the users' right to choose, free competition, and accessibility to telecommunication services."
This is the first major divestment since Marc Murtra assumed the presidency of Telefónica on January 18 and is aligned with the Spanish telco's strategy to "gradually reduce" its "exposure in Latin America."
The total price for 100% of the transferred shares amounts to approximately 1.189 million euros. The signing and closing of the transaction took place simultaneously, and this operation is part of the asset portfolio management policy of the Telefónica group.